The average standard VAT rate in the EU27 has risen strongly since 2008. In 2012, the standard VAT rate varies from 15.0% in Luxembourg to 27.0% in Hungary. Malta’s is the third lowest at 18%. When it was introduced in 1994 it was 15%.
Corporate tax rates in the EU27 have risen slightly in 2012, ending a long declining trend. The highest statutory tax rates on 2012 corporate income are recorded in France (36.1%), Malta (35.0%) and Belgium (34.0%), and the lowest in Bulgaria and Cyprus (both 10.0%) and Ireland (12.5%).
In comparison with the rest of the world, the EU27 tax ratio remains generally high. However, the tax burden varies significantly between Member States, ranging in 2010 from less than 30% in Lithuania (27.1%), Romania (27.2%), Latvia (27.3%), Bulgaria (27.4%), Slovakia (28.1%) and Ireland (28.2%), to more than 45% in Denmark (47.6%) and Sweden (45.8%).
Between 2009 and 2010, the largest falls in tax-to-GDP ratios were recorded in Hungary (from 40.1% to 37.7%), Lithuania (from 29.2% to 27.1%), Bulgaria (from 29.0% to 27.4%) and Estonia (from 35.7% to 34.2%), and the highest increases in Spain (from 30.7% to 31.9%), the United Kingdom (from 34.8% to 35.6%) and Latvia (from 26.7% to 27.3%). Malta’s fell 1.0% from 34.3% in 2009 to 33.3% in 2010.
The largest source of tax revenue in the EU27 is labour taxes, representing nearly half of total tax receipts, followed by consumption taxes at roughly one third and taxes on capital at just under one fifth.
The average implicit tax rate on labour was slightly up in the EU27 in 2010 compared with 2009, ending the steady decline observed from 2000. Among the Member States, the implicit tax rate on labour ranged in 2010 from 21.7% in Malta, 23.4% in Portugal, 24.4% in Bulgaria and 25.7% in the United Kingdom, to 42.6% in Italy, 42.5% in Belgium, 41.0% in France and 40.5% in Austria.
The average implicit tax rate on consumption in the EU27, which had been on a downward trend since 2007, increased in 2010. In 2010, implicit tax rates on consumption were lowest in Spain (14.6%), Greece (15.8%), Italy (16.8%), Latvia (17.3%) and Portugal (17.4%), and highest in Denmark (31.5%), Sweden (28.1%), Luxembourg (27.3%), Hungary (27.2%) and the Netherlands (27.0%). In Malta it’s 18.9%.
The highest revenues from recurrent taxes as a proportion of GDP were recorded in the United Kingdom (3.4%), France (2.3%) and Denmark (1.4%), and from transaction taxes in Belgium (1.8%), Italy (1.3%) and Spain (1.2%). In Malta it is 0% and 1.1% respectively.
This information comes from the 2012 edition of the publication Taxation trends in the European Union issued by Eurostat, the statistical office of the European Union and the Commission’s Directorate-General for Taxation and Customs Union. This publication compiles tax indicators in a harmonised framework based on the European System of Accounts (ESA 95), allowing accurate comparison of the tax systems and tax policies between EU Member States.